NADEX.COM

I stumbled upon the website for the North American Derivative Exchange which I believe is bought you by the guys over at IGN Markets. This broker offers typical spread-betting & binary options that have been available and highly popular over in Europe for a number of years. While I applaud any additional markets and the subsequent opportunities it presents, upon review of the fine print there are some serious issues in the fee structure. Check it out:

Trading fees: opening and closing orders

$1 per contract filled

Maximum $7 per order

Settlement fees

$1 per contract settled

Positions that are settled for a loss are not charged a settlement fee

The $1 per contract is nutso! Tick value = $1 so 100 cars equates to at least $107 in fees. Now add in the spreads, I’ve seen 4-7 point spreads which in our 100 car sample brings total commish to $807.00 Who do you think is making money in this transaction?? I’ve contacted them to get an idea of their Market Making partnership program and fee structre and will post follow ups.